Answer the following problems presented by Mr. Dela Cruz for you to solve and analyze. He was offered by a bank with three types of accounts. In the first account, interest rate is 12% compounded monthly. In the second account, he was offered 12.2% compounded twice a year. And lastly, in the third account he can earn 12.4% compounded once a year. If he will deposit Php50, 000.00 on that bank, how much will he have at the end of 5 years? Which account should he invest if his goal is to have a high return?
Answer the following problems presented by Mr. Dela Cruz for you to solve and analyze. He was offered by a bank with three types of accounts. In the first account, interest rate is 12% compounded monthly. In the second account, he was offered 12.2% compounded twice a year. And lastly, in the third account he can earn 12.4% compounded once a year. If he will deposit Php50, 000.00 on that bank, how much will he have at the end of 5 years? Which account should he invest if his goal is to have a high return?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please solve it properly so I can understand it. This part should follow this format: (Problem- Complete Solution- Conclusion). In your conclusion, make sure to answer what is asked in each problem and this part should be in paragraph form.
Transcribed Image Text:Answer the following problems presented by Mr. Dela Cruz for you to solve and analyze.
He was offered by a bank with three types of accounts. In the first account, interest rate is
12% compounded monthly. In the second account, he was offered 12.2% compounded
twice a year. And lastly, in the third account he can earn 12.4% compounded once a year.
If he will deposit Php50, 000.00 on that bank, how much will he have at the end of 5
years? Which account should he invest if his goal is to have a high return?
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